A strategy many investors practice is to follow the recommendations of Wall Street analysts. The easiest way to do this is by looking at analyst price targets. Wall Street analysts are typically responsible for coverage on a select group of stocks based on industry and market size…
Analysts meet with management and other stakeholders to help determine a company’s current and future value based on its financials and growth potential. They use this information to generate earnings estimates and target prices that help them form their overall ratings. While we don’t need to pay too much attention to analyst ratings, we should keep an eye on price targets. A price target is what analysts think the stock is worth per share.
When you take an average of analyst price targets, you can get a good idea of what price a stock could reach. If a stock is trading below its average target price, there is a solid chance it will increase its price. If a stock is trading more than 20% below its average price target, there is a strong chance it will rally, which is why investors should consider stocks such as Regeneron Pharmaceuticals, Inc. (REGN – Get Rating), ArcelorMittal (MT – Get Rating), and Boyd Gaming Corporation (BYD – Get Rating).
Regeneron Pharmaceuticals, Inc. (REGN – Get Rating)
REGN discovers, develops, and commercializes products that fight eye disease, cardiovascular disease, cancer, and inflammation. The company has several marketed products, including Eylea, approved for wet age-related macular degeneration and other eye diseases, Praluent for LDL cholesterol-lowering, and Dupixent for atopic dermatitis, asthma, and nasal polyposis.
The company’s key growth driver is Eylea, which continues to generate strong revenues from continued label expansions. The company Eylea is approved in the United States, EU, Japan, and other countries. Demographic trends have driven growth due to an aging population and an increase in the prevalence of diabetes.
REGN also has a deep pipeline of drugs, including fully human monoclonal antibodies generated using the VelocImmune technology. Promising drugs include fasinumab for osteoarthritis pain and evinacumab for homozygous familial hypercholesterolemia. The company has an overall grade of A, which translates into a Strong Buy rating in our POWR Ratings System.
The company has a Growth Grade of A, driven by strong earnings growth. REGN has a five-year average annual earnings growth of 41%. Plus, earnings are expected to rise 144.7% year over year in the current quarter. REGN also has a Value Grade of A, which isn’t surprising with a forward P/E of 11.36. In addition, the stock is trading 28% below its average analyst target price.
We also provide Momentum, Stability, Sentiment, and Quality Grades for REGN, which you can find here. REGN is ranked #1 in the Biotech industry. You can find other top-ranked stocks in this industry by clicking here.
ArcelorMittal (MT – Get Rating)
MT is the world’s leading steel and mining company. It has a presence in more than 60 countries, where its products are primarily sold to customers in the automotive, general, and packaging sectors. The company also produces long products consisting of sections, wire rods, rebar, billets, blooms and wire drawing, and tubular products.
The company has been benefiting from increased demand for steel as the economy has been opening up. Since its products serve two key infrastructure sectors, construction and transport, MT should also benefit from…
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